Venture Life Group (VLG) Investor Update summary

Strategic transformation and business simplification

• Divested CDMO operations in Italy and Sweden, along with peripheral/non-core brands, to focus on a pure-play branded consumer healthcare platform centered on "Proactive Healthy Longevity."

• Sale to BioDue S.p.A. for €62 million in cash, subject to regulatory approvals, with a one-off profit of approximately £24.1 million expected in FY25 accounts.

• Entered a long-term (10-year) manufacturing agreement with the buyer, ensuring supply and pricing stability, and a two-way transitional services agreement until 31 December 2026.

• Retained key strategic customer relationships, exclusive rights to technical files for Power Brands, and disposed of low-revenue, low-EBITDA brands.

• Venture Life will retain offices in the UK, Spain, and the US, and remain the largest customer of the divested CDMO business.

Financial impact and capital allocation

• Sale proceeds represent an 11x multiple of FY24 EBITDA for the divested entities, which generated £20.5 million in revenue and £4.9 million in adjusted EBITDA.

• Proceeds will be used to pay down over €20 million (£20.6 million) in revolving credit facility debt, with significant cash and borrowing capacity remaining for M&A.

• Lower capital intensity, reduced warehousing and finance costs, and improved EBITDA to free cash flow conversion expected.

• The revolving credit facility will remain available to support future M&A activities, with net leverage allowed up to 2.5x adjusted EBITDA.

• Audited FY24 results are expected to be released on 19 June 2025.

Growth strategy and operational focus

• Focus on expanding high-margin Power Brands (e.g., Balance Activ, Health & Her/Him, Lift, Earol, Pomi T, Gelclair) through marketing, innovation, and targeted M&A at lower EBITDA multiples.

• Targeting up to 20% of revenues from new product development, up from current 7-8%.

• Enhanced digital and data capabilities, including rollout of ERP and leveraging Health & Her app across brands.

• BioDue's expertise in food supplements is expected to benefit future product development.

• Management highlights the opportunity to drive growth ahead of peers and pursue earnings-accretive M&A in consumer healthcare.